When it comes to life insurance, the Life Insurance Corporation of India (LIC) stands as a trusted name in offering policies that not only secure your future but also provide substantial returns. For individuals looking for long-term investment options, selecting the right LIC policy can make a significant difference in the maturity benefits you receive. So, which LIC policy gives the highest returns? Let’s explore the best options available and see how you can maximize your investment.
Understanding LIC Policies
Before we dive into the policies that offer high returns, it’s essential to understand what LIC policies are and how they work. LIC offers a wide range of policies to cater to various needs, such as life coverage, savings, and investment. The policyholder pays premiums regularly, and upon maturity or in case of unforeseen circumstances, the policy pays out benefits.
Different Types of LIC Policies
- Endowment Plans: These policies combine both insurance and investment. They provide a lump-sum payment upon maturity along with life cover.
- Money-Back Plans: These policies offer periodic returns during the policy tenure, plus maturity benefits.
- Term Insurance with Return of Premium: These are pure life insurance policies, but some offer the return of the premium paid if the policyholder survives the policy term.
Factors Influencing Returns in LIC Policies
When determining which LIC policy offers the highest returns, several factors come into play:
- Premium Amount: The higher the premium, the greater the returns.
- Policy Term: Longer-term policies generally provide higher returns due to accumulated bonuses.
- Maturity Benefits and Bonuses: Many LIC policies come with reversionary bonuses that can significantly boost returns.
Types of LIC Policies Offering High Returns
LIC provides a variety of policies aimed at ensuring both financial security and high returns. The following policies are renowned for offering substantial returns over time.
LIC Jeevan Labh
LIC Jeevan Labh is a non-linked, limited premium paying, endowment plan. It’s designed to provide both savings and protection. The plan offers an excellent combination of low premiums and high returns, making it a popular choice among investors.
- Key Features:
- Combination of savings and protection
- Flexible premium payment options
- Lump-sum maturity benefit along with bonuses
- Returns: This policy is known for providing substantial maturity benefits due to the accumulated bonuses, which can lead to high overall returns.
LIC Jeevan Umang
LIC Jeevan Umang is a unique whole-life insurance policy that offers lifetime coverage and returns. This policy offers a regular payout from the end of the premium payment term until maturity and is a great option for those looking for lifelong financial security.
- Key Features:
- Lifetime coverage up to 100 years
- Annual survival benefits
- Lump-sum maturity benefit at the end of the policy term
- Returns: Jeevan Umang ensures periodic payouts (survival benefits), and the final maturity payout can be significant, including bonuses accumulated over time.
LIC New Endowment Plan
The New Endowment Plan from LIC is another high-return policy designed for long-term investors. It offers both death and maturity benefits, making it a well-rounded choice for individuals looking to grow their savings while securing their family’s future.
- Key Features:
- Fixed sum assured along with bonuses
- Death benefit during the policy term
- Lump-sum maturity benefit
- Returns: With the addition of bonuses, the New Endowment Plan is considered one of the best policies for long-term investors who want steady, high returns.
LIC Money-Back Policy (25 Years)
This policy is perfect for individuals seeking regular income. It offers periodic payouts throughout the policy term, along with a lump-sum maturity benefit, which includes bonuses.
- Key Features:
- Regular payouts every five years
- Lump-sum maturity benefit
- Life cover throughout the policy term
- Returns: The periodic payouts make this policy appealing for those looking for regular income, and the accumulated bonuses add a significant boost to the final returns.
Why Choose LIC for High-Return Investments?
LIC has been the go-to insurer for millions of Indians for decades. Its reputation for providing secure, high-return policies is well-founded. Here are some reasons why:
- Stability and Trust: LIC is a government-backed institution known for its stability.
- Bonuses: LIC regularly declares bonuses that add to the returns on its policies.
- Tax Benefits: Premiums paid towards LIC policies qualify for tax deductions under Section 80C of the Income Tax Act.
How to Maximize Returns from LIC Policies
To maximize the returns from your LIC policy, consider the following tips:
- Choose a Longer Policy Term: Longer policy terms usually yield higher returns due to more significant bonus accumulation.
- Understand the Bonus Structure: LIC offers bonuses such as reversionary bonuses, which can significantly boost the maturity amount.
- Invest Early: The earlier you invest, the longer your money has to grow, resulting in higher returns.
Risks to Consider in High-Return LIC Policies
While LIC policies are generally considered safe, there are a few risks to keep in mind:
- Low Liquidity: LIC policies are long-term investments, and withdrawing early may result in penalties.
- Premium Payment Commitment: Ensure you can consistently pay the premiums, as missed payments can reduce returns.
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Conclusion
When choosing the best LIC policy for high returns, it’s essential to align your financial goals with the policy features. Policies like Jeevan Labh, Jeevan Umang, and the New Endowment Plan stand out for their high returns due to accumulated bonuses and maturity benefits. Assess your needs and choose the one that fits best for long-term financial security.
FAQs
- Which LIC policy is best for long-term returns?
- LIC Jeevan Labh and the New Endowment Plan are ideal for long-term returns due to their bonus structure and maturity benefits.
- Are high-return LIC policies guaranteed?
- While the sum assured is guaranteed, the bonuses (which enhance returns) depend on LIC’s performance.
- How do bonuses impact LIC policy returns?
- Bonuses, like reversionary and final additional bonuses, significantly increase the maturity amount, enhancing overall returns.
- Can I withdraw from an LIC policy early?
- Yes, but early withdrawal may incur penalties and reduce the overall returns.
- What is the difference between endowment and money-back policies?
- Endowment policies provide a lump-sum benefit at maturity, whereas money-back policies offer periodic returns throughout the policy term.
I Am Sunil Solanki, I’m Full Time Content Creator. Currently I am a Blogger and Content Creator at publicdemandnews.com website. I have 6+ Years Experience in Blogging And Content Creation in Various Fields Like Automoblie, Tech Moblie, Sarkari Jobs, Sarkari Result, Syllabus and Exam pattern, Govt Yojana Career News & Exam Updates etc.
